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Ask Dave

Car Re-Possessed...Liable for Full Amount?

Sabrina's future son-in-law had his car repossessed and will be responsible for the deficit balance after selling it.

QUESTION: Sabrina said her future son-in-law let his car be re-possessed.  When they resell the car, will that money go toward the debt or is he liable for the full amount?

ANSWER: The deficit balance is the car’s sale price deducted from the loan amount.  That difference is all the bank can ask him for.  You should probably be asking some other questions in this situation.  What were the circumstances of his car being re-possessed.  The re-possession is the symptom of a bigger problem.  Don’t ignore that.